The company publishes three quarterly reports for 2022. In the first three quarters of 22 years, the company achieved revenue of 1.554 billion yuan, an increase of 16.30% over the same period last year, and a net profit of 201 million yuan, an increase of 30.00% over the same period last year. In a single quarter, 22Q3 achieved revenue of 611 million yuan, an increase of 16.88% over the same period last year, and a net profit of 89.92 million yuan, an increase of 34.26% over the same period last year. In terms of profitability, 22Q3's overall gross profit margin of 36.06%, month-on-month decline of 0.65pct, overall net profit rate of 16.29% civil explosion product Q3 good, rapid release of electronic detonators. The company's operating data announcement shows that 22Q3 industrial explosive revenue of 225 million yuan, year-on-year + 22%, month-on-month + 28%: industrial detonator revenue of 85.12 million yuan, year-on-year + 38%, month-on-month ratio + 58% (of which electronic detonator revenue is 68.78 million yuan, month-on-month ratio + 123% square blasting project revenue is 120 million yuan, year-on-year + 23%, month-on-month ratio + 3%. 22Q3 industrial explosive sales of 32800 tons, year-on-year + 6%, month-on-month + 30%; industrial detonator sales 10.72 million, year-on-year + 2%, month-on-month + 5% (of which electronic detonator sales were 4.88 million, month-on-month sales of 22Q1 and 22Q2 electronic detonators were 1.59 million and 2.35 million, respectively, and sales accelerated quarter by quarter): blasting engineering sales of 22.8 million cubic meters, year-on-year + 3%, month-on-month + 16%.

The policy promotes the rapid increase in the penetration rate of electronic detonators. According to the China blasting material Industry Association, from January to September 2002, the domestic industrial detonator output was 641 million units, an increase of 0.99% over the same period last year, and the sales volume was 653 million units, an increase of 1.48% over the same period last year. Among them, the output of electronic detonators was 202 million, an increase of 79.84% over the same period last year, and sales volume was 196 million units, an increase of 79.24% over the same period last year. In September, the output of electronic detonators was 44 million, an increase of 158.56 percent over the same period last year, and the permeability of electronic detonators accelerated.

Profit forecast and investment advice. It is estimated that the company's earnings per share from 22 to 24 are 0.53 yuan, 0.71 yuan and 0.81 yuan respectively, and the current share price is 16 times, 12 times and 10 times respectively. With reference to the valuation level and growth rate of the comparable company, the company's performance in 2022 is valued at 20 times PE, corresponding to a reasonable value of 10.59 yuan per share, maintaining a "buy" rating.

Risk hint. The risk of policy change; the risk of intensified market competition; the risk that the progress of new project construction is not as expected; the risk of macroeconomic cycle fluctuation.